US Federal Loans 鈥� also known as Direct Loans or Title IV Direct Loans 鈥� are available for US citizens/permanent residents studying in the UK and are designed to help fund your studies. If you want to find out if you are eligible to apply, visit our聽Federal Loans eligibility听辫补驳别.

When should you apply for your loan and how long will it take to process?

We begin processing loans for the new academic year around May.聽The loan approval process can take up to four weeks during peak processing periods (June to October) or longer if there are difficulties with your application, if you apply late, do not respond to emails or if the Federal Loans聽online systems are not available for processing. Therefore, if you need your application to be processed for a particular deadline, please ensure you apply in plenty of time (we recommend applying at least five weeks before a deadline). It is your responsibility to ensure that a complete loan application is submitted in a timely manner.

It is also possible to apply for or adjust your loans during the year. Please see the聽鈥�What if you want to increase or decrease how much you borrow?鈥� FAQ.

You have completed your Free Application for Federal Student Aid (FAFSA) but you haven't heard anything 鈥撀爓hat should you do?

As a foreign school, we are not automatically notified when a student completes their FAFSA; therefore, once you have submitted your FAFSA application, you MUST聽contact the Federal Aid Administrator聽at 蜜桃AV to provide:

  • your full name and family name
  • your Social Security Number (SSN)
  • your date of birth
  • your 蜜桃AV student reference number (starting with 5).

What can Federal Loans pay for?

US Federal Loans can only be used to pay for course tuition fees and living expenses associated with your studies. Examples of these are food, rent and travel to the UK. These educational costs relate only to you, the student, and cannot include costs for partners or children (other than childcare or nursery costs).

These costs are listed in the Cost of Attendance (COA we calculate for you. The COA is an estimate of your educational related costs for the academic year and specifies the total amount you may borrow through Federal Loans minus any other aid you may be receiving for that academic year such as bursaries or scholarships.

The COA is set by 蜜桃AV and approved by our Students鈥� Union (SU蜜桃AV) annually in May and it is increased in line with inflation for each academic year.聽

Deposit

We are only able to make loan payments AFTER you are fully enrolled on your programme and physically in the UK. Once a US Federal Loan that fully covers the fees amount is officially confirmed and approved, the deposit can be waived.

If the loan is not approved or is not enough to cover the full fees, students will be required to pay the deposit: /study/international/international-fees-funding/how-pay-your-deposit-faqs-postgraduate-international-applicants

How much could you borrow?

There are three kinds of loans 鈥� Subsidized, Unsubsidized and PLUS. The amount of money you can borrow depends on your course level and your dependency status.

Full details can be seen in the table below

Undergraduate dependent students

Undergraduate independent students

First year

$5,500 per year maximum, of which $3,500 per year is Subsidized

$9,500 per year maximum, of which $3,500 per year is Subsidized

Second year

$6,500 per year maximum, of which $4,500 per year is Subsidized

$10,500 per year maximum, of which $4,500 per year is Subsidized

Third year and beyond

$7,500 per year maximum, of which $5,500 per year is Subsidized

$12,500 per year maximum, of which $5,500 per year is Subsidized

Aggregate maximum:

$31,000 (maximum聽of which $23,000 is Subsidized)

$57,500 maximum, of which $23,000 is Subsidized

Postgraduate students

Annual Maximum Unsubsidized

$20,500 per year

Aggregate maximum:

$138,500 including undergraduate loans (maximum of which $65,500 is Subsidized)

What is the difference between Subsidized and Unsubsidized Loans?

The main difference between the two loans is that, with a Subsidized Loan, the US Department of Education pays the interest that accrues while you are studying at least part-time for the first six months after you finish your course (known as the grace period) and during a period of deferment (if you have one). With an Unsubsidized Loan, you are responsible for paying the interest for the entire period of the loan.

You can find more details聽.

What if you need to borrow more?

Your Subsidized and Unsubsidized loans may be topped up to the maximum Cost of Attendance (COA) with a聽, which is not an entitlement, but is subject to credit checking and may be declined by the US Department of Education.

There are also other forms of private educational funding you can apply for, for example聽 and

What if you want to increase, decrease or cancel your loans?

You have the option to increase, decrease or cancel your loans at a later date during the academic year, provided you give us a minimum of 20-day notice on the disbursement date as stated on your Notification letter. Any increase or decrease will be spread across any remaining disbursements.

What exchange rate is used when calculating your Cost of Attendance (COA)?

We are required to yearly set a static exchange rate at the start of the loan application cycle, and this must stay the same throughout the whole academic year. This average exchange rate is listed on the COA. The actual amount that you will receive in GBP拢 will depend upon the exchange rate on the date the funds are received on 蜜桃AV bank account. The University cannot know in advance nor guarantee the exchange rate used at the point of each disbursement.

What should you do if you are awarded other financial aid after your loan has been approved?

You must contact the Federal Aid Administrator at 蜜桃AV immediately if you are awarded a scholarship, grant or any other financial aid, as this must be factored into your Cost of Attendance (COA) and may affect how much you are eligible to borrow. Failure to do so will result in a recalculation and reduction of your loan later in the academic year when it is discovered you are in receipt of additional sources of funding.

How will your loan be paid?

Your money will be paid in two (Undergraduate and Postgraduate Research programmes) or three (Postgraduate Taught programmes) equal instalments聽each academic year. You will receive a Notification Letter from us outlining the amount of your loans, the disbursement dates, and the period / academic year your loans relate to. The wording and format of this letter has been agreed with UK Visas and Immigration (UKVI) as acceptable聽proof of funding for聽.

All disbursements are subject to the following conditions:

  • You are making聽
  • You are enrolled at least part-time/half-time
  • You are聽not聽in the USA
  • You have not violated any federal compliance regulations (repayment default, fraud, drugs, etc.).

PLEASE NOTE:

The US Department of Education charges an聽聽on all loans. The loan fee is a percentage of the loan amount and is proportionately deducted by the US Department of Education from each disbursement. This means the money you receive will be less than the amount you actually borrow.
A proportion of your tuition fees (less any deposit paid), bank fees and any other debts will be deducted from each disbursement by 蜜桃AV.
In order to refund you any remainder of your disbursement after the above-mentioned fees are deducted, 蜜桃AV will make payments in GBP拢 by BACS transfer directly to your bank account.

We will contact you before the first disbursement to obtain your bank details. You can provide a UK or a US bank account:

  • Check this webpage for instructions about聽opening a UK bank account
  • Please allow at least 3 working days for the money to be available to you due to standard bank processing times after your money leaves 蜜桃AV account
  • If you provide a US bank account, be aware that an international bank transfer has longer lead times (up to 14 calendar days to appear on your account) and the payment may be less due the receiving bank deducting bank charges.

IMPORTANT:
The amount of money you receive will vary as it is dependent upon the exchange rate from USD$ to GBP拢 at the time of disbursement.
If your loan disbursement is not enough to cover your tuition fees鈥� instalment, then there may not be any payment made to your bank account.

When will your loan be paid?

We are only able to make loan payments AFTER you are fully enrolled on your programme and physically in the UK.

You should receive your first payment within four weeks of arriving in the UK and enrolling on your course.聽In case of any unforeseen events,聽please ensure you have personal funds in place to cover your living costs for the first four weeks of the academic year. The value you are going to receive and the disbursement dates are shown on the Notification Letter sent to you by 蜜桃AV when we originate your loan. The actual amount of each disbursement in GBP拢 will be dependent upon the exchange rate used to convert USD$ to GBP拢 on that date.

The subsequent disbursements will be paid in line with the disbursement dates stated on your Notification letter.

Warning: if you do not tell us in advance (minimum of 20-day notice on the disbursement date) not to draw down your disbursement, you will be responsible for all interest charges and for its repayment.

What about the period before your first loan payment arrives?

We are only able to make loan payments AFTER you are fully enrolled on your programme and physically in the UK. You must have enough money to last you for the first few weeks of term, before your loan payment arrives. It can take up to four weeks after the start of term before your funds are available, so plan accordingly. In case of any unforeseen events,聽please ensure you have personal funds in place to cover your living costs for the first four weeks of the academic year.

You received a US Federal loan at 蜜桃AV last year. Do you need to re-apply or will you automatically receive loans for each year of your course?

If you want to borrow US Federal funding or private funding for each year of your course, you must re-apply for your loan each academic year. Please follow the instructions on our聽Funding support听辫补驳别.

What do you need to complete at the end of your 蜜桃AV course?

You are required under US law聽to complete聽聽shortly before graduating or otherwise leaving the university. The 蜜桃AV Federal Loans Administrator will email you with guidance about this process.

When do repayments start?

Your Student Loans must be repaid. If you do not meet the loan repayments as required by your loan servicer, you will go into default.聽It is important that you understand your rights and obligations when borrowing US Federal Loans. Students are advised to fully research and understand responsible borrowing and repayment before requesting Federal Student Loans. The聽聽webpage has an estimate calculator where you can calculate your estimated loan repayments.

You will have a six-month grace period from the time you graduate, leave your course or reduce your studying to less than part-time/half-time, before you have to begin repaying your loan. Once this six-month period ends, you will need to start making repayments. You can find more details聽.

Do you have to pay interest on a loan?

Yes. You can find full details聽.

Will the loan servicer know when you have graduated?

蜜桃AV will notify your loan servicer of any change in your enrolment status, including graduation.

How can you repay Federal Loans?

It is entirely your responsibility to repay your Federal Loans. You need to make arrangements for a repayment plan directly with your聽. When you enter the repayment process, you have a right to consider the loan repayment options available to you. You can find full details聽. If you fail to make the repayments, your student loan could default. This may lead to legal action, withholding of tax refunds, and/or a bad credit rating that could affect your ability to get a home mortgage, car loan or credit cards.

Can you defer Federal Loans repayments?

You can request a聽聽for a number of reasons, such as if you return to school. You need to speak directly to your loan servicer to find out if you are eligible and how to request a repayment deferment.

蜜桃AV is required to confirm student attendance every 60 days with the National Students Loan Data System (NSLDS). This update is submitted electronically and the information will be available to your loan servicer immediately.

If you have previous loans which need repayment but have not been automatically placed into a deferment by your loan servicer, you need to complete Sections 1 and 3 of the 鈥溾�� form and send a scanned copy to the聽Federal Aid Administrator. We will complete Section 4 of the form and send a scanned copy back to you so that you can forward it to your loan servicer. We are not able to sign any deferment forms until after you are officially enrolled at 蜜桃AV.

What should you do if you are struggling with repayments?

It is your responsibility to contact your聽聽if you are having difficulty in making your loan repayments. You also need to make sure you notify your loan servicer about any changes of name, address or telephone number.

What happens if you withdraw or interrupt from your course?

If you are considering withdrawing or interrupting from your course, speak to your Faculty for academic guidance and to the聽Federal Aid Administrator聽for US financial guidance.

If you withdraw or interrupt from your course, you聽must聽write to the聽Federal Aid Administrator聽at 蜜桃AV and to your聽, notifying them of your decision to withdraw or interrupt. You must do this within five days of withdrawing or interrupting from your course. You聽are聽also required by US law to complete聽.

Do you have to repay the loan when you withdraw or interrupt?

You will still need to repay your Federal Loans in the normal way (as explained above) if you withdraw or interrupt from your course.

蜜桃AV will complete a Return to Title IV (R2T4) calculation to calculate the amount of Title IV program assistance that has been earned, using a formula provided by the US Department of Education:

  • If it is calculated that you have completed more than 60% of your payment period, all the money you were due to receive for the payment period is considered to have been earned and no funds need to be returned.
  • If it is calculated that you have completed less than 60% of your payment period 蜜桃AV may need to return funds to the US Department of Education. Any funds you have already received after your tuition fees were deducted are not to be repaid immediately, but will be repaid as outlined in your MPN.

The requirements for Title IV program funds when you withdraw or interrupt聽are separate from聽. Therefore, you may still owe funds to 蜜桃AV to cover unpaid course fees. 蜜桃AV may also attempt to collect any Title IV Program funds from you that we are required to return.

The Federal Aid Administrator will inform you by email of the amount that 蜜桃AV is obliged to return to the US Federal Aid programme, the amount (if any) that needs to be paid to 蜜桃AV by the student, and the amount (if any) that is due to be refunded to the student by 蜜桃AV. The聽.

What happens if you don鈥檛 enroll?

If you have applied for Federal Loans but don鈥檛 enroll on your course, you聽must聽notify the聽Federal Aid Administrator聽and your聽聽immediately. We will delete your loan request and the US Department of Education will then cancel any payments due to be made to you.